To Determine Whether a Pharmaceutical Company's Profitability Ratios Indicate Strength

Multiple Choice

To determine whether a pharmaceutical company's profitability ratios indicate strength or weakness, we should
I. compare them to others in the same industry.
II. compare them to companies in unrelated industries such as energy or banking.
III. compare them to previous years.
IV. compare them to absolute standards established by the CFA Institute.

A) I and II only
B) I and III only
C) III and IV only
D) IV only